A tax law that has been on the books, to the annoyance of many businesses since 1982, may soon be discarded by members of the Colorado General Assembly.
Governor Jared Polis has called for doing away with a business personal property tax that requires businesses to pay a tax on all equipment, even if the equipment in question was purchased long ago and is no longer used.
In getting rid of the tax, Polis has told lawmakers that they will be “reducing paperwork” and protecting tens of thousands of small businesses “from onerous tax requirements.”
“This will save small businesses time and money and let them focus on what matters: their customers, their services, and their products,” the Governor continued.
In 2017 state lawmakers passed legislation allowing businesses to receive a tax credit that would be equal to the business personal property taxes, but only for taxes paid on the first $18,000 in property value.
Previously, Colorado has also allowed for businesses with $7,400 or less in equipment to not have to pay the tax.
If the tax is not done away with entirely, Polis said he is open to raising the $7,400 cap in order to provide greater leeway for businesses. He has also indicated an interest in raising the $18,000 cap for credit.
The move to get rid of the business personal property tax is proving more popular with lawmakers in the wake of a vote last November that repealed the Gallagher Amendment, which required non-residential properties to pay for 55% of all property taxes in the state.
By a nearly two-to-one margin, voters agreed to do away with that Gallagher law. As a result local governments in Colorado are now no longer as dependent as they once were on revenue from the business personal property tax.
By Garry Boulard
